|
Ministry of Commerce & Industry
|
National Single Window System  Portal used for all proposals seeking Govt. approval under FDI route
To promote foreign investment, the Government has put in place an investor friendly policy, wherein most sectors, except certain strategically important sectors, are open for 100% FDI under the automatic route, the Minister of State in the Ministry of Commerce and Industry, Shri Som Parkash said in reply to a parliamentary question today. Further, the policy on FDI is reviewed on an ongoing basis, to ensure that India remains an attractive and investor friendly destination. To simplify the approval process of foreign Investment and to promote ease of doing business, the erstwhile Foreign Investment Promotion Board  has been abolished in May 2017 and a new regime has been put in place. Under the new regime, process for granting FDI approvals has been simpliﬁed wherein the work relating to processing of applications for FDI has been delegated to the concerned Ministries/ Departments and DPIIT is the nodal department for facilitating the process. Detailed standard operating procedure for approval process has been issued by DPIIT. Further, all proposals seeking Government approval under FDI route are now ﬁled on National Single Window System  Portal.
FDI policy provisions have been progressively liberalized and simpliﬁed across various sectors in the last eight years, such as Pension, Other Financial Services, Asset reconstruction Companies, Broadcasting, Pharmaceuticals, Single Brand Retail Trading, Construction & Development, Power Exchanges, e- commerce activities, Coal Mining, Contract Manufacturing, Civil Aviation etc. In the recent past, reforms in the FDI Policy have been undertaken in sectors such as Defence, Insurance, Petroleum & Natural Gas and Telecom. FDI in defence sector is now allowed up to 74%  through automatic route for companies seeking new industrial license. In insurance sector, FDI limit has been raised from 49% to 74% for insurance companies under the automatic route and foreign ownership and control has been allowed with safeguards. FDI up to 20% in Life Insurance Corporation of India  has been permitted under automatic route. Further, FDI up to 100% under the automatic route has been permitted in Telecom sector. Details of Sectors wherein in FDI has increased in past 8 years, as compared to preceding 8 years is placed below:
Details of Sectors wherein in FDI has increased in past 8 years, as compared to preceding 8 years, in descending order of FDI Equity Inflow from April 2014 to March 2022 
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|
SECTOR-WISE COMPARISON of Amount of FDI Equity Inflow  
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|
Sl. No
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|
Sector
|
|
April 2006 to March 2014
|
|
April 2014 to March 2022
|
|
Growth %
|
|

|
|

|
|

|
|

|
|

|
|
1
|
|
COMPUTER SOFTWARE & HARDWARE
|
|
9,599
|
|
72,700
|
|
657
|
|
2
|
|
SERVICES SECTOR

|
|
37,628
|
|
54,689
|
|
45
|
|
3
|
|
TRADING
|
|
5,132
|
|
29,440
|
|
474
|
|
4
|
|
CONSTRUCTION 
ACTIVITIES
|
|
2,575
|
|
25,407
|
|
887
|
|
5
|
|
TELECOMMUNICATIONS
|
|
12,098
|
|
24,168
|
|
100
|
|
6
|
|
AUTOMOBILE INDUSTRY
|
|
8,580
|
|
23,030
|
|
168
|
|
7
|
|
CHEMICALS 
|
|
8,864
|
|
9,785
|
|
10
|
|
8
|
|
HOTEL & TOURISM
|
|
6,880
|
|
9,269
|
|
35
|
|
9
|
|
METALLURGICAL INDUSTRIES
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|
7,644
|
|
8,940
|
|
17
|
|
10
|
|
NON-CONVENTIONAL ENERGY
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|
2,997
|
|
8,618
|
|
188
|
|
11
|
|
ELECTRICAL EQUIPMENTS
|
|
2,927
|
|
7,369
|
|
152
|
|
12
|
|
EDUCATION
|
|
941
|
|
6,777
|
|
620
|
|
13
|
|
INFORMATION & BROADCASTING

|
|
3,511
|
|
5,962
|
|
70
|
|
14
|
|
HOSPITAL & DIAGNOSTIC CENTRES
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|
2,163
|
|
5,644
|
|
161
|
|
15
|
|
CONSULTANCY SERVICES
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|
1,939
|
|
5,524
|
|
185
|
|
16
|
|
RETAIL TRADING
|
|
107
|
|
3,856
|
|
3515
|
|
17
|
|
SEA TRANSPORT
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|
1,051
|
|
3,715
|
|
254
|
|
18
|
|
INDUSTRIAL MACHINERY
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|
2,668
|
|
3,413
|
|
28
|
|
19
|
|
AIR TRANSPORT (INCLUDING AIR
FREIGHT)
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|
476
|
|
3,050
|
|
541
|
|
20
|
|
CEMENT AND GYPSUM PRODUCTS
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|
2,190
|
|
2,612
|
|
19
|
|
21
|
|
TEXTILES 
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|
1,217
|
|
2,583
|
|
112
|
|
22
|
|
ELECTRONICS
|
|
803
|
|
2,267
|
|
182
|
|
23
|
|
MINING
|
|
952
|
|
2,252
|
|
136
|
|
24
|
|
FERMENTATION INDUSTRIES
|
|
1,604
|
|
1,995
|
|
24
|
|
25
|
|
RUBBER GOODS
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|
1,360
|
|
1,838
|
|
35
|
|
26
|
|
PRINTING OF BOOKS (INCLUDING LITHO
PRINTING INDUSTRY)
|
|
370
|
|
1,799
|
|
386
|
|
27
|
|
MEDICAL AND SURGICAL APPLIANCES
|
|
700
|
|
1,629
|
|
133
|
|
28
|
|
SOAPS, COSMETICS & TOILET
PREPARATIONS
|
|
653
|
|
1,506
|
|
131
|
|
29
|
|
PRIME MOVER (OTHER THAN ELECTRICAL
GENERATORS)
|
|
1,058
|
|
1,471
|
|
39
|
|
30
|
|
GLASS
|
|
331
|
|
859
|
|
160
|
|
31
|
|
DIAMOND,GOLD ORNAMENTS
|
|
387
|
|
780
|
|
102
|
|
32
|
|
RAILWAY RELATED COMPONENTS
|
|
470
|
|
721
|
|
53
|
|
33
|
|
AGRICULTURAL MACHINERY
|
|
187
|
|
641
|
|
243
|
|
34
|
|
VEGETABLE OILS AND VANASPATI
|
|
383
|
|
623
|
|
63
|
|
35
|
|
FERTILIZERS
|
|
263
|
|
394
|
|
50
|
|
36
|
|
BOILERS AND STEAM GENERATING
PLANTS
|
|
61
|
|
314
|
|
411
|
|
37
|
|
EARTH-MOVING MACHINERY
|
|
145
|
|
313
|
|
117
|
|
38
|
|
SUGAR
|
|
45
|
|
184
|
|
310
|
|
39
|
|
SCIENTIFIC INSTRUMENTS
|
|
129
|
|
164
|
|
28
|
|
40
|
|
GLUE AND GELATIN
|
|
9
|
|
138
|
|
1374
|
|
41
|
|
TIMBER PRODUCTS
|
|
85
|
|
129
|
|
52
|
|
42
|
|
LEATHER, LEATHER GOODS AND PICKERS
|
|
95
|
|
109
|
|
15
|
|
43
|
|
DYE-STUFFS
|
|
17
|
|
83
|
|
398
|
|
44
|
|
DEFENCE INDUSTRIES
|
|
5
|
|
8
|
|
55
Details of top 10 sectors that comprise more than 75% of FDI Equity inﬂow  received in the country during the last three ﬁnancial years  are as under:
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|
STATEMENT ON TOP SECTOR-WISE FDI EQUITY INFLOW FROM April 2019 TO March 2022
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|
Sr. No.
|
|
Sector
|
|
Amount of FDI
Equity Inflow

|
|
%age of Total
FDI Equity Inflow
|
|

|
|

|
|

|
|

|
|
1
|
|
COMPUTER SOFTWARE
& HARDWARE
|
|
48,279
|
|
29
|
|
2
|
|
SERVICES SECTOR (Fin.,
Banking, Insurance, Non Fin/Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis, Other)
|
|
20,045
|
|
12
|
|
3
|
|
CONSTRUCTION
 ACTIVITIES
|
|
13,164
|
|
8
|
|
4
|
|
TRADING
|
|
11,720
|
|
7
|
|
5
|
|
AUTOMOBILE INDUSTRY
|
|
11,455
|
|
7
|
|
6
|
|
METALLURGICAL INDUSTRIES
|
|
5,713
|
|
3
|
|
7
|
|
TELECOMMUNICATIONS
|
|
5,505
|
|
3
|
|
8
|
|
EDUCATION
|
|
5,245
|
|
3
|
|
9
|
|
HOTEL & TOURISM
|
|
4,036
|
|
2
|
|
10
|
|
NON-CONVENTIONAL ENERGY
|
|
3,792
|
|
2